Toyo Radiator will open a E14 million plant in the Czech Republic.
The factory will supply heat exchangers to Toyota and Japanese suppliers that are locating in eastern Europe.
Toyo is one of Japan's largest manufacturers of heat radiators, but does not belong to any of the Japanese Keiretsu supplier networks.
The company is expanding its European manufacturing operations. It owns Tesio Radiatori in Italy and has set up a joint venture in Germany with Behr.
Production at the new factory in Uhost, 20km east of Prague, will start next year.